Rate Adjustment Factor Is Incorrect When Adding an Asset with Amortize NBV Flag as Yes (Doc ID 1998928.1)

Last updated on APRIL 07, 2023

Applies to:

Oracle Assets - Version 12.2.3 and later
Information in this document applies to any platform.

Symptoms

Rate Adjustment Factor (RAF) will be incorrect when adding an asset with Amortize NBV over Remaining Life as Yes depending on conditions.

Steps to Reproduce
Add an asset with below:
--------------------------------------------------------
Period of Addition                 : October 2014
Cost                               : 17500
YTD depreciation                   : 0
Accumulated depreciation           : 16625
Date in Service                    : 01-APR-2012
Depreciation method                : STL 7year
Salvage value                      : 0
Depreciation limit amount          : 0
Amortize NBV over Remaining Life   : YES
Amortization Start Date            : 01-APR-2014
--------------------------------------------------------

Current Behavior:
FA_BOOKS *****
COST   METHOD EOFY_RESERVE RATE_ADJUSTMENT_FACTOR
----- ------ ------------ ----------------------
17500 STL            16625 0.714342857142857142857142857142857142857

Expected Behavior:
FA_BOOKS *****
COST   METHOD EOFY_RESERVE RATE_ADJUSTMENT_FACTOR
----- ------ ------------ ----------------------
17500 STL            16625 0.714285714285714285714285714285714285714

[As-Is] RAF = 0.714342857142857142857142857142857142857
[To-Be] RAF = 0.714285714285714285714285714285714285714